1. Attempt ALL questions Hugh is in his final year of study and forecast that it will cost $1,400,000 to cover tuition and boarding. He plans to finance 85% of the required amount with a 4-year loan from his local commercial bank. The loan is at a 16.5% annual rate and compounds monthly. 2. a) Using Excel, compute the monthly payment required to clear the loan within the projected period. b) Using Excel, prepare the amortization spreadsheet (show formulas). How much interest would Hugh have paid at the end of two and half c) years? d) What proportion of the 25th payment is interest? e) What is the effective rate being charged by the commercial bank? You are planning to buy a parcel of land costing $3,750,000. You have saved $1 250 000 as a down payment. You plan to borrow the balance from your building society at a rate of 13.5%, to be repaid annually over a 6-year period. The first payment is to be made immediately 3. a) Using Excel, compute the annual payment b) Using Excel, prepare the amortization schedule c) If you elected to pay off the balance of the loan at the end of the fourth year, how much would you have to pay? Janet applied for a loan from her credit union. The annual interest rate is 19%. She plans to repay it over 6.5 years, paying $22 800 monthly. a) How much did Janet borrow? b) Prepare the loan amortization schedule for the first year. c) Compute the effective annual rate of the loan.